No word play -- Blockbuster is reportedly going bust

Blockbuster Reportedly About To File For Bankruptcy

By Joseph Tartakoff/paidcontent
Blockbuster, which had warned for months that it might have to declare bankruptcy, is expected to file for Chapter 11 later this week or next, the Wall Street Journal says. The paper says that Blockbuster will likely close 500 to 800 stores. That's in addition to of the 960 stores Blockbuster announced it would close a year ago as part of what it called a "transformation" of its business.
As of July 4, it had 3,425 stores in the U.S., down from 4,356 a year ago.

The store closings will likely hasten the transition to alternate video rental models, and, indeed, Netflix stock is up 5.8 percent today to $155.74. Blockbuster, by contrast, is down 23.75 percent to $0.06 a share.
The rental landscape has already been transformed by number two player Movie Gallery's decision earlier this year to shut down all of its 2,666 locations after it too filed for bankruptcy.
Blockbuster apparently still believes there's a market for a much-smaller bricks-and-mortar chain, although the WSJ says the restructured company will also emphasize "digital distribution." The company has an on-demand streaming service that it said it would expand last year, although it has had nowhere near Netflix's success.

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